House Speaker Nancy Pelosi, D-Calif., will work with Democrats to include $1 trillion in the next round of coronavirus stimulus relief funding to assist state and local governments hurt by the outbreak.
The hefty number would likely be the biggest single line-item for the next aid package, known as CARES 2. It would include billions in additional money to help businesses, workers and families stay above water during turbulent economic times.
"We're not going to be able to cover all of it, but to the extent that we can keep the states and localities sustainable, that's our goal," Pelosi told reporters in the basement of the near-deserted Capitol.
The bill could set up a battle with Senate Republicans, where leaders have shunned the idea of providing more funding for state and local governments in the final "interim" coronavirus package, which went into effect last week.
"That strikes me as a pretty outrageous number, just for state and local support," Sen. John Cornyn, R-Texas, told reporters in the Capitol, shortly after Pelosi floated the $1 trillion figure. "We've already provided 150 billion dollars" in CARES 1.
Senate Republicans worry new federal funding would only be a safety net for governors who have mismanaged their states' revenues during the pandemic.
Last week, Senate Majority Leader Mitch McConnell, R-Ky. said states should declare bankruptcy rather than receive more federal funding, saying he would be "in favor of allowing states to use the bankruptcy route."
McConnell reversed course on that message Wednesday, however, saying he would be "open" to the new stimulus package to financially assist fire, police, and other front-line workers.
In either case, Pelosi was prepared for a dog fight to get emergency responders the money they need in states that have been economically staggered by the pandemic.
"They're risking their lives to save lives, and now they're going to lose their jobs? It's just stunning, and we have to address it," Pelosi said. "This isn't about any other budget issues for states; it's about the coronavirus outlays [and] revenue lost."
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